TEMPE, Ariz. – The U.S. manufacturing sector contracted in January for the 15th month in a row, according to the Institute for Supply Management. The index registered a 49.1%, showing an improvement over December’s 47.4%. This means that while a contraction was still seen, its decline was smaller than what was recorded last month.

As of October 2023, the sector has been in its longest stretch of decline since 2008’s Great Recession. Before these 15 months of decline, manufacturing had grown for 28 consecutive months.

“The U.S. manufacturing sector continued to contract, though at a marginal rate compared to December,” said ISM Chairman Timothy R. Fiore. “Demand improved, output remained stable and inputs are accommodative.”

“Panelists’ companies maintained production levels month over month and continued headcount reductions in January, with significant layoff activity,” he continued. “Inputs — defined as supplier deliveries, inventories, prices and imports — continued to accommodate future demand growth but are showing signs of stiffening.”

Just four of the 18 manufacturing industries recognized by the ISM grew for the month, with one reporting no change and 13 reporting contraction. Furniture and wood products were both among those to report a contraction.

New orders for the sector overall rose in January for just the second time in 20 months. Furniture and wood products, however, saw a dip in orders. The same is true for production output: The sector overall expanded but furniture and wood products declined.

Employment declined overall for the fourth straight month, primarily through attrition, freezes and layoffs. Quit rates remained at 12-month lows. Furniture and wood products were among six industries to report no change in employment.

Furniture manufacturers reported a lower order backlog for the month, while wood products reported no change from December.

Source: https://www.furnituretoday.com/